PETRONAS Dagangan Berhad (PDB) closed 2018 with a commendable performance, sustaining its Profit Before Tax at above RM1 billion and sales volume at 14.9 billion litres despite continued volatility of the industry and stiff competition. This demonstrates the Company’s resilience in fuelling growth, balancing immediate targets and growing for the future.
With a robust financial year ending 2018, PDB declared a total dividend of 70 sen per ordinary share at the Company’s 37th Annual General Meeting. The dividend represents a payout ratio of 81 percent – the highest dividend payout ratio since 2014.
Speaking at the Meeting, PDB’s Managing Director and Chief Executive Officer Dato’ Sri Syed Zainal said, “Our solid results are attributable to the team’s focused execution of the business strategies, supported by integrated inventory management, efficiency in supply and distribution, and operating expenditure optimisation.”
In 2018, Retail Business continued to enhance its customer experience via aggressive asset refresh, transforming the ambiance of 300 PETRONAS stations and 100 Kedai Mesra nationwide., as well as opening more than 10 new stations. Its non-fuel business recorded a 40 percent growth on food sales. Via its targeted marketing campaign, Mesra Bonanza, coupled with the best-in-industry loyalty programme, the business has successfully increased its Kad Mesra active users by 15 percent and acquired 17percent more new members.
Despite a tougher cost environment, the Commercial Business further solidified its leadership position as a solution partner through a robust marketing strategy and focusing on customer-centricity, with differentiated offerings. This in turn strengthened its relationships with its customers, enabling the business to secure new contracts from airlines.
The LPG Business continued to be the market leader and further expanded its sales channels at selected PETRONAS stations to ensure convenience and product availability. It also commenced the sale of 14kg cylinders for the commercial market segment.
Its Lubricant Business managed to increase its brand presence, recording significant volume increment in the highstreet and OEM segments. The business also successfully secured a new long-term contract with the main rail operator in Peninsular Malaysia to supply locomotive engine oil.
“While we are cautious about the continued volatility of oil prices, we are committed to fuelling the business and accelerating growth by continuing to be customer-obsessed. This customer-first mindset has pushed us to move like never before and will continue to guide us as we go beyond the norm to deliver a seamless and frictionless customer experience,” added Syed Zainal.
In line with this, PDB launched its new fuel early this year, the PETRONAS Primax 95 with Pro-Drive, which has been developed to meet current driving needs and engine requirements. Based on drivers’ testimonials, the new fuel has indeed proven to deliver a smoother, more responsive and efficient drive.
On the digital forefront, the Company also introduced Setel, South East Asia’s first e-payment app of its kind, at the PETRONAS stations. Integrated directly to the fuel pump, Setel allows customers to purchase fuel directly from the comfort of their vehicles. At the end of 2018, Setel has been made available at close to 100 PETRONAS stations in the Klang Valley.
Over and above this, PDB will also continue to leverage on its network of partners, existing and new, to further expand the offerings for its non-fuel business, while enhancing customer experience.
“We have laid a strong foundation for the next phase of growth, and we are optimistic that we will be able to see the return of our investments from this year onwards,” Syed Zainal concluded.